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Wednesday, December 12, 2012

Medicines Co to spend $300 million to boost hospital products line, (NASDAQ: MDCO)

Medicines Company, a maker of drugs used in hospitals, will spend about $300 million in two deals to bulk up its surgical care products portfolio.The company will pay $105 million upfront for a two-year license to market Bristol-Myers Squibb Company's device to control bleeding during surgery.Medicines Co also said it agreed to pay $185 million to acquire privately held Incline Therapeutics, which is developing a device to manage post-operative pain."Both assets fit well with Medicines Co's current hospital franchise. It follows the company's historical ability to bring in interesting assets that may need further work, but can be picked up at a reasonable price because they could need more development," RBC Capital Markets analyst Adnan Butt said.

The Medicines Company is a pharmaceutical company focused on the treatment of critical care patients through the delivery of medicines to the global hospital marketplace. Shares of MDCO remained unchanged at $21.85. In the past year, the shares have traded as low as $18.06 and as high as $26.95. On average, 506229 shares of MDCO exchange hands on a given day and today's volume is recorded at 0.